Measuring Success: Performance Analysis of Land Securities

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Added on  2022/12/28

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This project critically analyzes and evaluates the performance of Land Securities from the perspectives of its stakeholders. By applying a variety of performance management tools, you will analyze financial and non-financial data for the company.
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MEASURING SUCCESS
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Table of Contents
Introduction......................................................................................................................................3
Triple Bottom line........................................................................................................................3
Ratio Analysis..................................................................................................................................4
CSR Pyramid...................................................................................................................................5
Competitor Analysis........................................................................................................................7
Balance Scorecard...........................................................................................................................9
References......................................................................................................................................11
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Introduction
Land Securities Group PLC is a holding company. The Company buys, sells and controls
business premises. It works across three departments: office, sales and specialist departments.
The Cookie Office covers all workplaces, almost all in London. The retail cookie includes all
outlets, retail outlets, retail outlets and retail outlets within its London premises. The specialist's
portfolio includes its leisure and accommodation facilities, Piccadilly Lights, and other specialist
facilities not covered by each category. The Company has locations, which include recreational,
private, retail, workplaces, retail outlets, and shopping malls. Its venues include Bluewater,
Greenhithe; 123 Victoria Street, London SW1; Brighton Marina, Brighton; Cardinal Place,
London SW1; The Galleria, Hatfield; Zig Zag Building, London SW1; Lakeside Sale Park, West
Thurrock, Southside, Wandsworth SW18 and 55 Old Broad Street.
This project is based on critically analyses and evaluation of the performance of Land Securities
from the perspectives of its stakeholders. By applying a variety of performance management
tools, you will analyse financial and non-financial data for the company.
Triple Bottom line
Economic/Profit
- It is especially suitable for Land Securities and lenders. Many say that engineers are receiving
too much cash flow and some say that they should not. This is of course unreasonable, since the
promotion of the land is a risky business (just see the new situation) and they don’t like to rule
the Fortune 500. In reality, however, real estate designers who really care and work with them
Nearby residents are often referred to as myths, but those who do not see it as meaningless.
Environmental/Planet
- LEED-ND progression is confirmed and LEED structures are validated. The United States
Green Building Council has established a valid rule by which engineers can be held accountable
when taking steps toward environmental friendliness. It covers pretty much any kind of green
thinking, from water barrels to alternatives to vehicle ownership.
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- Accommodation and transport options that reduce carbon emissions are affordable. As stated,
the ability to live in smaller units (heating / cooling the structures is the biggest carbon footprint)
and walking or cycling (transport is lost) to complaints is all that can be made to be green.
Social / People
- The development of local businesses is supported by the chains. The chains do not have to
worry about helping as long as the ground progresses, they have their own action plan and
previously established risk resources. Why is it “Social” instead of “Effective”? Because it is
much easier for engineers to focus on chains that are recognizable and able to pay higher rents.
However, if engineers take the time to develop interesting and productive neighborhood groups,
property estimates rise as the area is somewhat more attractive.
- Construction works are available locally at any time that can be accessed. The components that
should be considered are the carrying out of the work of this association, which can contribute in
full to the housing costs to try to stay low, and whether the work nearby can be prepared for it.
Developing with more energy as primary protection axes, producing higher cost materials, yet
with lower labor costs.
- Housing is provided at costs that nearby residents can manage. This means a mix of housing
types for a mix of salaries, and as most minimum wages are relatively low for new lodges, it also
means creating more modern and stylish finished units. High with no parking required (saves an
additional $ 20,000).
Ratio Analysis
Below is the ratio analysis of Land Securities from 2019 to 2020:
Profitability
Compan
y
Industr
y
Gross margin TTM 52.07% 72.32%
Operating margin TTM -174.96%
193.55
%
Pretax margin TTM -218.17%
208.41
%
Net Profit margin TTM -217.74%
205.69
%
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Return on Equity TTM -17.39%
174.56
%
Return on Assets TTM -11.74% 24.89%
Return on Investment TTM -13.13%
163.03
%
Liquidity
Quick Ratio MRQ - 1.27
Current Ratio MRQ 0.43 1.77
LT Debt to Equity MRQ 0.3653 0.4009
Total Debt to Equity MRQ 0.502 0.4222
Efficiency
Asset Turnover TTM 0.05 0.38
Inventory Turnover TTM - 20.38
Revenue/Employee TTM 1.23M 932.57K
Net
Income/Employee TTM -2.68M 2.72M
Receivable Turnover TTM 1.38 14.32
Interpretation: The above ratio analyses clearly indicate that there is negative profitability of
Land securities due to the impact of pandemic. But industry has positive profitability ratios;
Land Securities requires adopting some measures to maintain profitability into the business.
The liquidity of the company is below 0.5, which could become major threat in terms of
insolvency for the company. Land Securities requires to pay off its debt to reduce the risk of
become insolvent.
The efficiency of the company is not favorable for investors in terms of investment. The asset
turnover ratio is very much low due to great fall into sales revenue. The revenue per employee is
much higher than industry. This indicates inappropriate management of fund; it also indicates
poor management skill of the company. On the other hand, net income from employee is
negative, which is not good indicator for company’s performance.
CSR Pyramid
The potential for corporate responsibility (CSR) has been a topic of conversation since the
1950s. However, it was only a matter of time before people began to realize its importance,
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significance and impact. CSR, in the structure we see today, has become mainstream after being
identified by Archie Carroll's "Pyramid of Corporate Social Responsibility" in 1991. Its
simplicity, but the ability to representing the potential of CSR with four divisions, having made
the pyramid perhaps the most recognizable physical assumptions of CSR since then.
Economic Responsibility
The lowest point of the pyramid is opposite the first obligation of Land Securities, which is
profitable. Without benefits, the organization would not be able to pay its employees; delegates
will lose their positions even before the group starts CSR exercises. Being useful is the lonely
way for an organization to be able to hold out for the long haul. In addition, it also means that an
organization has a responsibility to create products and businesses that customers want, at a
reasonable cost.
Legal Responsibility
The second level of the pyramid is Land Securities ’legitimate commitment to abide by the law.
Corporate law, conflict with various bodies, guidance on costs, welfare and safety of
representatives are examples of the legal obligations that an organization should comply with.
Neglecting to be legally trustworthy can be devastating for organizations.
Ethical Responsibility
The moral level of the pyramid is shown to make the best decision, completely reasonable
conditions and also abstain from pain. Land titles do not have to be legally binding, but in the
same way they carry out their activities morally. However, it is better for an organization to be
moral as this not only shows their partners that they are good and yet, people feel more
comfortable buying products / administrations from the organization. . Land Securities is
harmless to the ecosystem; proper handling of suppliers / agents demonstrates the organisation's
trustworthiness.
Philanthropic Responsibility
At the top of the pyramid, consuming the smallest space is altruism. Land Securities has long
been studied for its carbon footprint, its role in pollution, its use of common resources, and the
bottom line of the sky. To counter these negative problems, they rewarded their territory. While
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this is the most important stage of CSR, it shouldn't be a concern as many people have to work
with organizations that reward society. Magnanimous responsibility is more than making the
wisest decision, but it is something that supports the characteristics of the organization, to reward
society.
Competitor Analysis
SWOT Analysis
The Land Security Agency’s SWOT test examines the brand / organization for its merits,
demerits, openings and risks. In a Land Security Agency’s SWOT review, the strengths and
weaknesses of the components are internal while the openings and risks are the external factors.
SWOT Analysis is a proven management system that allows a brand like Land Securities Group
to evaluate its business and perform against its competitors and the industry. Land Securities
Group is one of the leading brands in the region and the development area. The table below lists
the SWOT (Strengths, Weaknesses, Opportunities, Risks), Land Security Group key disputes and
includes US Securities Group (USP) target market segment, segment, position and specific sales
recommendation. .
Strength
1. The largest company owned company in the UK
2. Individual from the FTSE 100
3. Amazing customer support
4. Surrounding, properly designed and executed, will endanger the board circle
Weakness
1. Geographically limited presence
2. The sensitivity and variance in resource estimation are high
Opportunities
1. Creating associations to communicate and reduce risk at key turning points in events
2. Geographical development
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3. Grow a large resource base during the recession
Threats
1. Decrease in job interest in the UK
2. Retail market risk due to fragility of economy
3. Expand online shopping
4. Extension of rates and changes in VAT
Porter’s five forces analysis
Threats of New Entrants
New competitors in the real estate industry bring improvements, better ways of doing things and
push Land Securities Group Plc through a lower valuation approach, reduce costs and offer
advice on new benefits for clients. Land Securities Group Plc must address all of these issues and
successfully build barriers to protect its margins.
Bargaining Power of Suppliers
All real estate organizations buy their raw materials from different suppliers. Vendors in a
typical position can reduce the margins Land Securities Group Plc can find when they look.
Major suppliers in the financial area are using their negotiation skills to separate the more remote
costs from the real estate agencies. The general effect of an increased exchange of power
suppliers is that it reduces the overall productivity of buildings.
Bargaining Power of Buyers
Buyers are regularly part of an inquiry. They have to buy the best deals while addressing the
underlying cost as expected. This focused on Land Securities Group Plc's long-term productivity.
The larger and more impressive the customer base of Land Securities Group Plc, the greater the
customer strength and the greater the ability to seek expanding frontiers and offerings.
Threats of Substitute Products or Services
The moment another element or administration meets a comparable customer in an unexpected
way, the productivity of the company lasts. For example, there are perks like Dropbox and
Google Drive instead of compatible hardware drivers. The risk from another element or
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administration is high if it offers a significantly different incentive than current industry
offerings.
Rivalry among the Existing Competitors
If the dispute between the normal business parties is specific, it will reduce costs and reduce the
overall productivity of the company. Land Securities Group Plc operates in the real estate
business. This challenge bears the costs for the long-term benefit of the association.
Balance Scorecard
Balance scorecard of Land Securities
Perspectiv
es
Strategies
Customer
Experience
NPS from 10 to 25
No
Misleading
Ad or Mis-
sell
Educate ,
Guide and
Support
R & D &
innovation
for new
products /
ways for
better
experience
Total end
to end
support
from
booking
to
shifting
Fulfilling all
Commitments
, Total
Transparency
Going out
of the way
to support,
add
surprise
and delight
regularly
Financial ROI of 40%
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Minimum
1 Million
sq feet
projects
Residential
Only ,
clear land
projects
Leverage
equity up
to 3 times
5
Million
sq feet
delivery
every
year
2 and 3 tier cities
, exploring
options for
higher ROI
projects/financial
engineering
People Employee Happiness Index (EHI) up by 20%
Flexibility
in choice
of work
and time
Annual
Happiness
measurement
Aggressive
policies to
enhance
the EHI
Scope
for
personal
hobby
and
learning
Preparing with
skills for
higher
responsibilities,
handle
uncertain
future
Internal Improve TAT by 10%
Continues
process
mapping
and
eliminating
redundancy
Continues
Kaizen
and
eliminate
time and
money
waste
Customer
Focused
Process
rejuvenation
Learning best
practice from
other
industry and
implementing
Exposing
people to
best
practice
companies
to learn
hands on
Governanc
e
Ratio of Fresh to Experience / Ratio of Multiple Discipline /
Zero Tolerance to Unethical Conduct / Amount of Scholar Ships
to Community and Housing Society Families
Must have
two
Internal
Innovation
Reward
best
Community
Service to
Support to
housing
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independent
directors
from
diverse
fields
team to
work with
senior
board
members
ethical
and moral
behaviors
surrounding
community
, labor on
site.
society for
community
living
projects
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References
Stock master.in, 2021. LAND – Land Securities Group Share Summary View. Available at:
https://www.stockmaster.in/fundamental-analysis-of-land-land-securities-group-plc.html
Landsec.com, 2021. Annual results 2020. Available at: https://landsec.com/node/4376
Landsec.com, 2021. Sustainability Performance and Data Report 2020. Available at:
https://landsec.com/sites/default/files/2020-06/Landsec%20Sustainability%20Performance
%20and%20Data%20Report%202020.pdf
London stock exchange, 2021. Land securities group plc. Available at:
https://www.londonstockexchange.com/stock/LAND/land-securities-group-plc/analysis?lang=en
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